Prices of gold continue to buck downward trend

An interesting read on commodities. Seems that platinum, soy and corn-based bio fuels are commodities worth looking into. Natural energy is probably an area I should research further (or rather, when time permits). Hiaks, so much information but so little time!

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19 Feb 08 (CNA)
Prices of gold continue to buck downward trend

SINGAPORE: Commodities have traditionally been viewed as safe-haven investments during economic crises. In the current global recession, precious metals such as gold have been favourites among investors. But other commodities may also offer good opportunities. Manufacturing demand has declined in most global markets. Energy and metal sectors are seeing less orders as major economies such as China and India begin to slow down. Dominic Schnider, head of Commodities, UBS Wealth Management Research, said: "Some prices are trading deeply into the cost curve especially when we look at the base metals... The levels that we have in the energy sector and the base metals side are only feasible because the macro-economic environment is so grim." The lower demand in energy has also led to falling oil prices. Oil is now trading at under US$50 per barrel – down by over a 100 per cent from a year earlier. But gold is bucking the downward trend. Worried investors have flocked to the yellow metal amid the global recession and this has driven up its price by 30 per cent from the previous year. Some analysts, however, are cautious as they feel gold may be over-priced and advise looking to other commodities for longer term investments. "Going towards 2010, the need for autocatalysts remains a robust driver for platinum prices. So platinum is, for us, definitely a pick for 2009 and 2010," said Mr Schnider. Other areas that could be bright sparks are soy and corn-based bio-fuels.